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I have a contract of a project, where the deposit

Customer Question
I have a contract for...
I have a contract for funding of a project, where the deposit will be held with a US law firm based in California, in an escrow account.
The contract is supposed to be as follows: if the funding is not delivered, the deposit in the escrow will be delivered back to us.
However, I would like to have a lawyer give me advice on what the escrow agreeeent really stipulates.
Submitted: 3 years ago.Category: Business Law
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Customer reply replied 3 years ago
PS I have the relevant documents to hand.
Customer reply replied 3 years ago
Please find the relevant documents attached.Many thanks.
Answered in 1 hour by:
7/3/2015
Business Lawyer: Law Educator, Esq., Attorney replied 3 years ago
Law Educator, Esq.
Category: Business Law
Satisfied Customers: 126,685
Experience: All corporate law, including non-profits and charitable fraternal organizations.
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You understand that the escrow agreement mandates you pay the escrow company 1% immediately upon the deposit of the escrow and also a non-refundable payment to PIC Holdings of $12,000, none of which you will get back.
So, regardless of whether the funding is delivered or not, you would lose 1% plus $12,000 right up front you cannot get back. Also, there are many companies in Nevis that are engaged in what is called an "advance fee scam" meaning you pay money up front to get them to loan you money. If the loan is legitimate, regardless what they say, the money that they are due would be paid to them from the money you are borrowing. So in other words if you were seeking the $150 Million, they would take their fees out of that.
You need to be wary of giving them $350,000 here, and you would according to the way it is written 61 days after if the agreement is not settled, you would get back whatever was remaining of your $350,000 (about $15,000 less than you deposited with them).
You cannot sue under any of these contracts either, they mandate arbitration with the International Chamber of Commerce.
I would strongly consider you may want to go to your local attorney and lender, because if this company is in Nevis your chances of getting to them or getting anything from them could be very slim.
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Customer reply replied 3 years ago
Hello,Thank you for this detailed response.To confirm: are there are situations under which I would not receive back the balance of the escrow after 61 days as per the agreement (minus the fees mentioned)?Thank you.
Business Lawyer: Law Educator, Esq., Attorney replied 3 years ago
Thank you for your reply.
You would not receive it back if they claim you have somehow materially breached the contract with them. Other than that if the contract is not fulfilled the escrow is supposed to be returned.
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Customer reply replied 3 years ago
Under what circumstances could it be materially breached?
Business Lawyer: Law Educator, Esq., Attorney replied 3 years ago
Thank you for your reply.
That would mean you did not fulfill one of the terms of the funding agreement with the lender. It could be anything that does not fulfill that funding agreement that would be considered a material breach.
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Customer reply replied 3 years ago
So all in all, the Escrow doesn't really provide protection?
Business Lawyer: Law Educator, Esq., Attorney replied 3 years ago
Thank you for your reply.
Well, it protects you as long as the other party does not claim somehow you breached the contract with them. It is just that these prepayment loans are so susceptible of scams, because it makes no sense that someone who needs to borrow money has to put up money first, that is the point of borrowing the money because they need the money. This is a huge red flag of an advance fee scam.
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